Revenues Per $1,000 of Personal Income, Arizona State and Local Governments
Relative to personal income, revenues raised directly by state and local governments in Arizona (own-source revenues) fell 12 percent between fiscal year (FY) 1992 and FY 2012 (the latest data). Most of this decline resulted from the multiple state government tax cuts passed since the early 1990s. However, even relative to personal income, revenues are cyclical, higher during economic booms and lower during recessions. The real-estate-driven economic boom in the mid-2000s temporarily pushed revenues higher while revenues in FYs 2009 and 2010 were adversely affected by the long and deep recession. Revenues per $1,000 of personal income were hardly higher in FYs 2011 and 2012 than the FY 2010 trough.
Intergovernmental revenues from the federal government represent the difference between total revenues and own-source revenues. Per $1,000 of personal income, intergovernmental revenues have increased over time, but very large increases in FYs 2009 and 2010 were temporary, resulting from the federal government’s economic stimulus program. The FY 2011 and 2012 figures were lower than in the prior year.